[BLOG] Oklahoma City industrial vacancy falls to 7.6 percent

Steady demand for industrial space helped lower vacancy once again in Oklahoma City during the first quarter of the year. According to a first-quarter industrial market report released recently by Xceligent Inc., vacancy fell to 7.6 percent during the quarter, down from 8 percent at the end of 2012. The report noted that the Oklahoma City industrial market experienced 66,886 square feet of absorption.

Data showed that the Southeast submarket experienced the most absorption with 153,356 square feet. In terms of property type, bulk warehouse led the market with 182,827 square feet of absorption. The biggest deal of the quarter was the University of Oklahoma leasing 134,024 square feet of bulk warehouse space at 2450 John Saxon Blvd. The second-largest deal was Vatters Office Supply leasing 40,314 square feet in the Wilshire Alliance Commerce Center.

Xceligent reported that the steady absorption in the market has resulted in a lack of availability of large blocks of space. Furthermore, there is currently a shortage of smaller buildings that feature 14-foot to 16-foot doors with a yard. The report also observed that much of the activity in the market is the result of expansion from local tenants and not out-of-state relocations or expansion. The steady absorption is also causing rent rates to rise, with every category of space having experienced an increase in the fourth quarter.

Despite the increase in rent rates, Xceligent said they are still not high enough to justify new construction. However, when new construction does occur, the research firm said it will consist of speculative construction and ultimately cause space issues for large corporate users.

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